Jayesh Dahyabhai Patel, 48, Knoxville, Tennessee, has been indictment and charged with five counts of bank fraud. Patel allegedly provided false income tax returns for himself and his businesses to induce First Community Bank to issue the loan.
Patel appeared in court on May 29, 2014, before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. He was released pending trial, which has been set for July 23, 2014, in U.S. District Court in Greeneville, Tennessee.
According to the indictment on file with the U.S. District Court, from January 2009 through August 2011, Patel engaged in a scheme to defraud First Community Bank, East Tennessee, Kingsport, in connection with a $5.8 million loan to his business, QIS Knoxville LLC, to purchase and renovate a Knoxville hotel.
The indictment alleges that Patel provided false income tax returns for himself and his businesses to induce First Community Bank to issue the loan. Patel then further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns to obtain an increase in the amount of the loan and to obtain a six-month interest only payment period. The indictment also alleges that Patel fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase.
If convicted, Patel faces a term of 30 years in prison, a $1,000,000 fine, and five years of supervised release as to each count.
This indictment is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith will represent the United States.